Romania's energy sector requires $34 bn investment by 2030

The European Union state is one of the bloc's most energy-independent countries as a net exporter of power, although it has to import oil and about 10 percent of its gas needsREUTERS | March 14, 2019, 17:52 IST

The European Union state is one of the bloc's most energy-independent countries as a net exporter of power, although it has to import oil and about 10 percent of its gas needs.

The 2019-2030 energy strategy draft, for which the energy ministry is awaiting feedback by the end of this month, looks at investment in gas and power networks, interconnections and energy production.

The investment needs are estimated at 15 to 30 billion euros by 2030, with an additional 15 billion potentially needed between 2031-2050, the draft said.

But government policy towards investors has been unpredictable, making it hard for energy developers to draft long-term strategies and deterring investment.

In late December, the cabinet approved power and gas price caps and introduced a turnover tax without public debate or impact assessment.

Romania uses a mix of gas, coal, hydro, nuclear and renewable energy to generate electricity. But many of its generation plants are 30 to 40 years old and need to be replaced gradually, the draft said.

Adding two more units to Romania's sole nuclear plant in Cernavoda on the river Danube was considered a top investment priority, although the government has been struggling for years to secure investors for the costly project.

The draft said that in addition to their own capital, energy firms could tap EU funds and loans from international lenders such as European Bank for Reconstruction and Development and the European Investment Bank.

Funds from tenders under the EU's greenhouse emission trading scheme could provide significant revenue, the ministry said, while the government could provide support schemes such as guaranteed power prices.

The draft estimates production would rise from 63 terrawatt hours (TWh) in 2017 to 77 Twh in 2030 and 86 TWh in 2050.

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The ongoing field development and EOR/IOR projects are expected to produce a cumulative of 54.6 million tonne (mt) of crude oil and 114 billion cubic meter (bcm) of natural gas in the next three to four years, the report said.